Ecuadorian Amazon: petroleum project threatens Sumaco Biosphere Reserve

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A major part of Napo Province in the Ecuadorian Amazon is designated by UNESCO as the Sumaco Biosphere Reserve. The Canadian company Ivanhoe Energy signed a contract with the Ecuadorian government to explore for petroleum in Block 20, which is situated within the reserve. The company is projected to extract between 4.5 and 7 billion barrels of petroleum from 30 or more wells. The project has not been sufficiently studied and we fear that it will have major social and environmental impacts.

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The Ecuadorian government has been a pioneer in developing alternatives to oil exploitation through its “Leave Crude Below Underground” project in Yasuní National Park in the Ecuadorian Amazon. This project was established to protect the national park from petroleum exploitation and to obtain compensation from the international community for the effort to conserve the biodiversity and indigenous groups that inhabit the zone.

But areas of comparable biological value are being concessioned out to multinational petroleum companies not far from Yasuní. In the search for revenue, the national government has concessioned Block 20, also known as Pungarayacu, for the extraction of heavy crude. The Pungarayacu oil field is 146,000 hectares of terrain that includes populated and protected zones such as the Sumaco Biosphere Reserve.

Sumaco Biosphere Reserve extends between the counties of Arosemena Tola to the south, passing the cities of Archidona and Tena to the east near the beginning of the Napo River until the city of Coca (in Orellana Province), and it includes water sources such as the Napo and Coca Rivers. Designated as a Biosphere Reserve by UNESCO in 1997, the national park consists of 930,000 hectares of primary tropical and Andean forest and an immense amount of biodiversity.

There are other protected forests in the province such as the Antisana and Llanganates Reserves. Every year, the area attracts thousands of tourists who want to enjoy its lush diversity. We fear that the petroleum project will seriously damage the local eco-tourism industry, an important source of jobs. The country’s constitution has strict laws about the process of citizen participation in extractive projects, and is also the first in the world to give the environment equal rights with humans. However, Ivanhoe Energy is not complying with these laws. They are advancing their operations through deceit and are dividing indigenous communities and community leaders. This lack of cooperation has been manifested in a failure to previously consult communities about the project. The government initiated negotiations with Ivanhoe without consulting indigenous communities and those who will be affected by the project, thereby ignoring their constitutional rights.

In May 2009, the Kichwa community of Rukullacta published a denouncement of the law-violation. The government continues to ignore various denouncements and legal demands put out by various social sectors against the project. The Environmental Impact Assessment (EIA), completed in only six months, is superficial and inadequate in terms of covering the risks of the project. The study contains conclusions and contradictions that are not justified. For example, water sources, which are hugely important in a tropical rainforest, are largely at risk because of the project. The EIA rates the sensitivity of areas with sources of water, concluding that the risk of contamination is irrelevant or moderate without giving justification for this conclusion. Regarding the publication of the study, the public was given only three weeks to comment on the study, a period that coincided with the national elections, which logically absorbed the public’s attention. The petroleum company does not have sufficient capitol to execute the project, not to mention the funds to implement the necessary precautions to minimize spills and contamination or for environmental remediation. In addition, the EIA does not consider surrounding areas that will be affected, roads that will have to be constructed, or the destruction of primary forest. Furthermore, Ivanhoe Energy is applying the habitual strategy of negotiation with some leaders and members of the communities, compromising them with the promise of jobs, rather than leaving sectional governments to discuss compensation with the communities, as the law demands. With this approach, they are entering communities without gaining their consent.

Write to the Ecuadorian government and ask them to guarantee total transparency of all operations that go on in the region.

More information about Ivanhoe Energy (in spanish): ¿Quién está detrás de Ivanhoe Energy?

Update: http://www.amazonwatch.org/newsroom/view_news.php?id=2047 You find an english translation of the letter.

Back­ground

Letter in English

Subject: Transparency in the concesión and exploitation of petroleum in Block 20

March 2010

Esteemed Sr. President Correa
Esteemed Ing. Germánico Pinto, Ministry of Non-Renewable Natural Resources
Esteemed Lic. Alexandra Ocles, Secretary of Villages, Social Movements and citizen Participation
Esteemed Dr. José Serrano, National Secretary of Management Transparency

With great preoccupation, I have become aware of the news that the government has concessioned Block 20 or Pungarayuacu for crude oil extraction. The Ecuadorian Constitution includes laws about the process of citizen participation in extractive projects and is the first in the world to give legal rights to nature. However, Ivanhoe Energy has not complied with these laws and advances its operations denying the public of fundamental information and dividing indigenous communities and community leaders. Por este motivo, por la presente le solicito que garantice la transparencia de toda la operaciones que se están realizando en la zona, y que atienda y responda a los reclamos de la población, y que: For this reason, to whom it may concern, I ask that the government to guarantee transparency of all operations within the zone, and that it attends to and responds to the claims of the people of the region, and that: The government suspend all perforation activities until a new environmental impact assessment has been completed by a known and respected company in the field that is impartial and conforms to international norms of quality for this type of project; and that neither the government nor the company influences the investigators or the communities during the process. The results of the study be made public and that the information continues to be accessible throughout the project with sufficient time for objections. The public has the right to decide, in an informative, participative and open process, without political influence, if it wants the project to continue, given the risks divulged in full form. The public’s decision be respected by the government in the case that the people did not want the project to continue, and that the government facilitate a productive dialogue to look for other forms of sustaining communities’ needs in terms of financial income, health and conservation of natural resources. If the perforation is approved by the people through this participative process, that the company has to guarantee, before re-initiating the project, adequate funds to assure full remediation of the sites. If the perforation is approved by the people, that an impartial commitment is established, which represents all those involved (including communities), to give transparency to all of the activities of the company.

Waiting a response on the part of those solicited, your attention is appreciated,

Letter

Marzo 2010

Estimado Sr. Presidente Correa
Estimado Ing. Germánico Pinto, Ministro de Recursos Naturales No Renovables
Estimada Lic. Alexandra Ocles, Secretaría de Pueblos, Movimientos Sociales y Participación Ciudadana
Estimado Dr. José Serrano, Secretario Nacional de Transparencia de Gestión


Con gran preocupación, he conocido la noticia de que el gobierno ha concesionado el Bloque 20 o Pungarayacu para la extracción crudo pesado. La Constitución ecuatoriana contampla en sus artículos el proceso de participación cuidadana frente a proyectos extractivos y contempla también aspectos ambientales y de forma pionera en el mundo, los derechos de la naturaleza. Sin embargo, la compañía Ivanhoe Energy no esta cumpliendo con los mismos y avanza sus operaciones mediante engaños, ocultando información fundamental y dividiendo a las comunidades indigenas y líderes comunitarios.

Por este motivo, por la presente le solicito que garantice la transparencia de toda la operaciones que se están realizando en la zona, y que atienda y responda a los reclamos de la población, y que:

Que el gobierno suspenda todo el trabajo de perforación hasta que cumpla otro estudio ambiental que sea realizado por una compañía conocida y respetada en el campo e imparcial y que compagine con normas internacionales de calidad por este tipo de proyecto; y que ni el gobierno ni la compañía influyan a los investigadores o a las comunidades durante este proceso.

Que los resultados del estudio sean publicados y difundidos ampliamente, permitiendo que la información sea verdaderamente accesible a lo largo de todo el proyecto, y haya tiempo suficiente para las objeciones.

Que el público tenga derecho decidir si quiere el proyecto, en un proceso informativo, participativo y abierto, sin influencia política, divulgados todos los riesgos en forma completa.

Que la decisión del público sea respetada por el gobierno y en el caso que no lo quiera, arranque un diálogo productivo para buscar otras formas de satisfacer las necesidades de ingresos económicos, conservación de los recursos naturales, y salud.

Si se aprueba la perforación por este dicho proceso participativo, que compañía tenga que garantizar, antes de reiniciar el trabajo, un fondo adecuado para asegurar la remediación veradera de los sitios.

Si se aprueba la perforación, que se establezca un comité imparcial y representante de todos los actores (incluyendo las comunidades) para dar veeduria abierta a las actividades de la compañía.

Esperando una respuesta de su parte a estas solicidudes, se despide atentamente,

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